Overview of BEA’s State-level Data on Foreign Direct Investment in the United States Daniel R. Yorgason Understanding Regional Economic Data for Policy and Planning BEA/ACCRADallas, Texas—September 8, 2006

2 BEA’s regional direct investment data  Introduction  Direct investment definition  10% ownership threshold (compare portfolio)  BEA data often focus on more than 50% (controlling) ownership cases (esp. post-2002)  Reasons for interest in direct investment data  Foreign ownership of assets in the U.S.  Globalization  Wages, offshoring, etc.

3 BEA’s regional direct investment data  Uses of regional direct investment data  Determining extent of “globalization” of local economy  Analyzing effects on employment, economic growth, technology and competitiveness  Assessing effectiveness of targeted local and regional policies  Tax incentives  Promotional missions

4 BEA’s regional direct investment data  Overview of direct investment  Two types of investment  Inward (Foreign direct investment in the United States)  Outward (U.S. direct investment abroad)  Two types of surveys  Balance of payments surveys  Financial and operating surveys  Benchmark and annual

5 Regional data availability  Inward financial and operating data items available by state (and country or industry)  Number of employees  Total  Manufacturing  Gross book value of property, plant, and equipment  Gross book value of commercial property

6 Regional data availability  Link with Census Bureau  Sources  BEA’s benchmark inward financial and operating survey  Census’ Economic Census  Census’ Business Register  Items available by state (and country and/or industry)  Number of establishments  Number of employees  Payroll  Shipments  Value added in manufacturing  State only items for manufacturing establishments  e.g., wages, hours, capital spending, inventories

7 Comparison of available data Issue BEA financial and operating survey Data link with Census Bureau Timeliness (most recent) (2002 out by end of year) FrequencyAnnual Once every five years Responding unit EnterpriseEstablishment Industry detail 9 industries Roughly 500 industries

8 Accessing data  Website –  Interactive data  Time series capability, key item availability  “Selected” tables  Current, high interest tables  Comprehensive sets of tables (zip files)  PDF or Excel  Publications  Survey of Current Business (e.g., August 2006 – Anderson, Zeile)  Data publications now primarily PDF (hard copy for benchmark surveys)

9 Interactive data from BEA

10 Interactive data from BEA

11 Interactive data from BEA

12 Interactive data from BEA

13 Interactive data from BEA

14 Interactive data from BEA

15 Interactive data from BEA

16 Interactive data from BEA

17 Interactive data from BEA

18 Interactive data from BEA

19 Interactive data from BEA

20 Interactive data from BEA Texas

21 Interactive data from BEA

22 Selected tables from BEA

23 Selected tables from BEA

24 Selected tables from BEA

25 Selected tables from BEA

26 Direct investment share of employment, 2004

27 Direct investment share of employment, 2004 Texas and neighbors

28 Top 5 statesTexas region states RankStateShareRankStateShare 1South Carolina7.9%26Texas4.2% 2New Hampshire7.4%38Arkansas3.2% 3Connecticut7.1%39Louisiana3.1% 4Delaware7.0%44Oklahoma2.7% 5Hawaii6.6%48New Mexico2.1% Direct investment share of employment, 2004 *** August 2006 Survey of Current Business *** Top 5 statesTexas and neighbors RankStateShareRankStateShare 1South Carolina7.9%26Texas4.2% 2New Hampshire7.4%38Arkansas3.2% 3Connecticut7.1%39Louisiana3.1% 4Delaware7.0%44Oklahoma2.7% 5Hawaii6.6%48New Mexico2.1%

29 Top source countries for Texas RankSource countryShare Ratio: share relative to all- U.S. share 1United Kingdom0.91%112% 2France0.46%114% 3Netherlands0.43%101% --Latin America & Other WH0.56%193% --Mexico0.15%321% Top source countries for Texas RankSource countryShare Ratio: share relative to all- U.S. share 1United Kingdom0.91%112% 2France0.46%114% 3Netherlands0.43%101% --Latin America & Other WH0.56%193% --Mexico0.15%321% Direct investment share of employment, 2004 Top source countries for Texas RankSource countryShare Ratio: share relative to all- U.S. share 1United Kingdom0.91%112% 2France0.46%114% 3Netherlands0.43%101% --Latin America & Other WH0.56%193% --Mexico0.15%321%

30 Top source countries for Texas’ neighbors RankSource countryShare Ratio: share relative to all- U.S. share 1United Kingdom0.46%112% 2France0.36%114% 3Germany0.30%101% --Latin America & Other WH0.34%117% --Mexico0.02%40% Top source countries for Texas’ neighbors RankSource countryShare Ratio: share relative to all- U.S. share 1United Kingdom0.46%112% 2France0.36%114% 3Germany0.30%101% --Latin America & Other WH0.34%117% --Mexico0.02%40% Direct investment share of employment, 2004 Top source countries for Texas’ neighbors RankSource countryShare Ratio: share relative to all- U.S. share 1United Kingdom0.46%112% 2France0.36%114% 3Germany0.30%101% --Latin America & Other WH0.34%117% --Mexico0.02%40%

31 Top 4 statesOther Texas neighbors RankStateShareRankStateShare 1North Dakota0.66%12Oklahoma0.36% 2Wyoming0.56%39New Mexico0.13% 3Texas0.56%40Arkansas0.13% 4Louisiana0.53%-- U.S. w/o Texas and neighbors 0.28% Top 4 statesOther Texas neighbors RankStateShareRankStateShare 1North Dakota0.66%12Oklahoma0.36% 2Wyoming0.56%39New Mexico0.13% 3Texas0.56%40Arkansas0.13% 4Louisiana0.53%-- U.S. w/o Texas and neighbors 0.28% Direct investment share of employment, 2004 Latin America & Other Western Hemisphere Top 4 statesOther Texas neighbors RankStateShareRankStateShare 1North Dakota0.66%12Oklahoma0.36% 2Wyoming0.56%39New Mexico0.13% 3Texas0.56%40Arkansas0.13% 4Louisiana0.53%-- U.S. w/o Texas and neighbors 0.28%

32 BEA-Census link data

33 BEA-Census link data Scroll down

34 BEA-Census link data

35 BEA-Census link data

36 BEA-Census link data

37 BEA-Census link data

38 Detailed industry data Texas non-manufacturing tables, to 499

39 Detailed industry data Texas manufacturing tables, 1997

40 Detailed industry data Texas manufacturing, UK ownership,1997

41 Detailed industry data Texas manufacturing, UK ownership,1997 Top 5 industries

42 Other regional data  Direct investment  Survey of Current Business article (May 1999) by Shannon, Zeile, Johnson  “Regional Patterns in the Location of Foreign-Owned Manufacturing Establishments”  Inward manufacturing at sub-state level  One-time study  Link with Census/National Science Foundation  R & D spending by state  Will be produced for first time using 2004 data

43 Direct investment share of employment, 1992 Manufacturing establishments May 1999 Survey of Current Business

44 Other regional data  International trade  Produced by Census Bureau  Some data freely available  e.g., State export data for recent years, Gulf ports data in wake of Katrina   Some data available at a charge  Detailed state data  Detailed port data   trade/reference/products/catalog/elec.html

45 Census Bureau trade data Scroll down

46 Census Bureau trade data

47 Contact Dan Yorgason Economist, Research Branch International Investment Division Bureau of Economic Analysis